Motivations for Alternative Financial Solutions Credit Product Utilize. Grounds for utilization of Alternative Financial solutions (AFS) Credit items

Motivations for Alternative Financial Solutions Credit Product Utilize. Grounds for utilization of Alternative Financial solutions (AFS) Credit items

Expenses Financed with Alternative Financial Solutions Loans. Alternative monetary solutions credit items are usually marketed as short-term solutions for crisis cash requirements among liquidity-constrained people. Dining dining Table 4 presents the reasons that AFS users report for making use of these credit services and products. The absolute most typical explanation cited for utilizing an AFS loan had not been to satisfy a crisis need: nearly 50 % of AFS users (44 per cent) reported using the loan to pay for fundamental cost of living. Nearly 5 per cent reported utilising the loan to shop for luxury products. Nineteen % of customers utilized the loans in order to make up for lost earnings, very nearly 13 per cent of customers utilized the loan for car or home repairs, and much more than 2 % utilized the loan to cover medical expenses. 16